U.S. Secretary of State Condoleezza Rice -- en route to the Middle East -- dismissed a report in "The New York Times" of an alleged joint effort to avoid a confrontation over suspicions that Tehran is seeking to develop nuclear weapons.
"The New York Times" said Washington had agreed with Britain, France, and Germany to allow Tehran to maintain very small-scale nuclear activities.
But under the proposal cited by the paper, Iran would have to move all uranium-enrichment activities to Russia. "The New York Times" quoted American and European officials as its sources.
Rice, however, said there was "no U.S.-European proposal" being prepared for the Iranians.
Russia has backed Iran's plans to develop an atomic energy industry and is building a nuclear power station for Iran.
Washington has voiced fears that Iran could turn such a civil programme to military use.